Nike's Weighted Average Cost of Capital

Nike is the largest athletic shoe and app bel friendship in the mankind with a trade share of nearly forty percent. The familiarity incorporated in 1968, and has been headed by Phillip Knight, a co-founder and CEO, since its inception. Nike owns and operates over 700 factories world-wide and its products are distributed in 140 different countries. Through vast query amongst the consultants here at Prime Seven, we feel that our calculations record that Nikes current share price is overvalued. In asset to this, we confirm also found that Nike has faced a correct in growth in tax tax revenue and net income, a decline in marketplace share, a series of cloudy labor practices, and a slumping United States Economy. For these reasons, we feel that the NorthPoint should not phase in Nike for its Large-Cap Fund. Nikes Decline Despite off years of great success, Nike has recently fallen into a slump. With the swipe in competition from shoemaker Adidas and resurgence from Reebok, Nikes market share in the athletic shoe and apparel craft has dropped off dramatically in 2000; down nearly tenner percent. Nike also experienced an enormous drop in its revenue growth, which may signal to shareholders that it has already plateaued as a corporation.

Nike outstrip out in 1997 with a forty percent accession in revenue, but has only topped out at a five and a half percent add always since. The decline in revenue can at once be attributed to their decrease in net income, which has only gravid at just below two percent for the graduation sextette months of 2001. On 02/26/2001, after th e close of the market, Nike issued a fight ! back release revising its third billet and fiscal 2000 shekels because of problems arising from the impact of implementing new demand and translate planning systems develop by i2 Technologies. Nike... If you want to get a full essay, high society it on our website: OrderCustomPaper.com

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